DD Cancellation Letter (Cash and Cheque Based)

DD Cancellation Letter – DD stands for demand draft. A dd or a demand draft is a negotiable instrument that the bank provides to its customers. A negotiable instrument refers to a guarantee for an amount of payment giving the name of the payee. The demand draft is a non-transferrable instrument.

What do you mean by a DD cancellation letter?

DD cancellation letter is needed when you have the finalized demand draft; the total money will be deducted or subtracted from your account. If you want to cancel the demand draft, it can only be done by the bank. You would need to visit the branch of your bank personally and will have to request the cancellation of your demand draft.

The bank itself issues demand draft to customer and drawer in which it is directed to the branch of their bank or to some other bank to pay the given amount of money to the payee. In most cases, a demand draft is provided to the client when the person or party is unknown to each other. And when there is no way to trust the other person. In this situation, when there is no trust, and they do not know each other, this demand draft becomes very handy as nobody will be able to do fraud, cheating, or deceit with the other person. The draft is payable when it is demanded. The bank will not pay it to the bearer, but in this case, the beneficiary needs to show the paper or instrument in the bank. The clearing mechanism of the bank may also collect it.

Many people correlate the demand draft with the cheques also but to your knowledge; it is more secure than a cheque also. There is no chance to cheat. The reason is that the client has to pay in advance before issuing a demand draft to a bank. But in the case of cheques, the bank may provide them to a person without certifying that the bank account has the specific amount or balance. That is why the demand draft gives assurance of safety and on-time payment, whereas cheques may bounce when there is no sufficient amount in the bank account.      

When do we need a DD cancellation letter?

If you have used a demand draft mistakenly or the details of the payee given are wrong or when the money has been deducted from the payee account, and you have received the demand draft also, but due to some reasons, you want to cancel the demand draft. In these cases, you need to visit the bank on a person and make a humble request to the branch of the bank to cancel the demand draft. 

Is there any process to cancel a DD?

Yes, you need to follow a procedure if you want to cancel a demand draft. Firstly, you need to visit the bank itself and then follow the procedures as told by the bank.

Can it be canceled online?

It depends on the bank. As per our information, no Indian bank offers it online. You need to go to the bank itself to collect the demand draft. Banks like SBI do not offer it on an online basis. You have to go to the branch for the cancellation process. And banks like HDFC, ICICI offer an online procedure for the cancellation process.

What are the steps to get a demand draft?

Nowadays, demand drafts are not preferable. So, it is absolutely fine to be unaware of the steps to cancel a demand draft. We are providing you some easy steps to do so within no time.

 As I said earlier also banks like HDFC and ICICI allow you to do so online also. So, if you are a client of HDFC or ICICI, you may do it by following some simple and easy steps given in the article, and if you are a client of banks like SBI, which do not allow you to do it online, follow the steps given below.

Step 1: Firstly, you need to visit the bank’s nearest branch and ask them for a demand draft application form.

Step 2: Take the demand draft application form and fill in the required basic details.

Step 3-Basic Details on the form can be; the mode of payment, either cheque or cash, beneficiary name, account detail, if cheque, then the cheque number, location to pay the demand draft, signature, date.

Step 4: To avoid errors, please recheck the details before submitting the form.

Step 5: Every bank charges a minimal processing fee to make a demand draft. Bank charges may vary from bank to bank.

Step 6: For the knowledge, you should ask the representative about the charges before filling the demand draft form because some of the banks ask for it to be written on the form paper.

Step 7 – you will be asked to submit your pan card details if the amount of the dd exceeds the limitation of the pre-defined by one’s respective.

What are the ways to cancel a draft demand?

If you are willing to cancel a demand draft, then follow the given steps. When you make a demand draft, you already pay for it in advance only. To cancel your demand draft and get back your money, you have to go to the nearest branch of the bank and place a request for the same. For this, you have to fill a cancellation form. As of now, no Indian bank allows an online service for the same. You have paid the amount on the two bases only.

Cancellation of DD (Cash Based)

Firstly, you need to submit the original dd and the cash payment receipt made earlier. Bank will give the mentioned amount back to you immediately. A common dd charge from the amount and the leftover will be refunded to you within no time. 

Based on a bank account

If you want that, the refunded money should be credited to your bank account only. You need to submit the original demand draft and a cancellation form along with that. The amount after deducting the charges will be credited back to your account.

Now, if the original demand draft slip has been misplaced by you and you do not have that dd with you. You have to sign an indemnity bond for the bank. Afterward, the bank will give back the amount of money after deducting the charges within a week only, or some banks process the amount after the demand drafts expiry date.  

How to write a letter to SBI for the demand draft (dd) cancellation? ( If you have applied demand draft through check )


The Branch Manager,

State Bank Of India,

Dwarka Mor,


Shiv kumar, 

A- 26 shiv colony

Pin code – 110065

Subject – For the cancellation of the demand draft ( DD number )

Sir / Madam,

A demand draft dated 20 September 2021 for Rupees 3,00,000 favoring Shyamlal ( Name of the person in whose favor it was drawn ) was drawn on Delhi ( Name of the payee bank branch ). The transaction has not been made between us because it expired ( the reason for the cancellation of dd ). So, I kindly request you credit the amount of money in my account after deducting the demand draft charges in my account SBI23046 ( account number ) with the State Bank Of India.

Thanking you 

Yours sincerely


Account number

Full name of the applicant

Your Address 

Contact details

How to write a letter to HDFC bank for the cancellation of a demand draft? ( in case of id the dd is applied through cash)

Date: 21 September 2021


The branch manager, 

Housing Development Finance corporation bank,

Dwarka Mor,

Pin code – 110042 ( postal code )


Shiv Kumar, 

P- 45, desu colony 

Uttam Nagar, 

Pin code – 110034

Subject – Request letter for demand draft cancellation ( DD number )

Sir / Madam,

 I firmly request you to cancel the demand draft ( DD number ), which has been taken on 21 September 2021 from your bank for 50,000 (amount of the demand draft )in favor of the ( Name of the person in whose favor it is drawn or the personal name for DD ). The details I entered were wrong, or the bank account details I entered for the transaction regarding the demand draft is ****234, while you are the holder of the account, which goes by ****213 ( the number ).

I want to request your cancellation of the DD and make a cash payment after deducting the demand draft charges.

Thanking you 

Yours faithfully, 

Date of DD taken – 20 September 2021

DD number – 345627

Amount of DD – 50,000 ( fifty thousand ) in words also.

Faq About DD Cancellation

  • How long does it take to expire a DD?

According to the guidelines issued by the Reserve Bank Of India, the validation of a demand draft is three months only from the date the bank issued it. 

  • Can a bank draft be canceled? 

Yes, a bank draft can be canceled and refunded to you either by cash or through bank account transfer.

  •   How can a demand draft be canceled online?

Generally, banks do not offer to cancel a demand draft online. Only a few banks like HDFC and ICICI offer to cancel a DD online. SBI does not offer online.


I hope this article genuinely helped you. If you liked it, you might leave comments below. Through the help of this article, you would know about the demand draft and be able to write the letter to any branch manager for the cancellation of the Demand Draft.

Note: The personal details given in the sample letter are assumed; you all should fill in your details by replacing those in the letter.

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